World VAT/GST News July 2021

Singapore

From 1 January 2023, the Singaporean government confirmed that it will introduce a Goods and Service Tax (GST) on imported sales of goods and non-digital services.

At present, non-resident businesses providing goods or non-digital services in Singapore below SGD 400 (approx. €250) are exempt from GST. However, to remove the unfair advantage this gives to non-resident companies over resident providers, the Singaporean government has confirmed that it will implement GST at 7% on these sales.

The new obligation follows the introduction of GST on the sale of e-services in 2020.

Ukraine

From 1 January 2022, Ukraine will impose VAT at 20% on the sale of e-services to local consumers by non-resident businesses.

At present, non-resident businesses providing digital services in Ukraine don’t have to charge VAT on their sales. However, to remove the unfair advantage this gives to non-resident companies over Ukrainian resident providers, the Ukrainian tax authorities have confirmed that VAT will be charged at 20% on these types of transactions from 2022.

This new tax will only apply to non-resident businesses with annual sales in the Ukraine above a calendar year threshold of UAH 1 million (approx. £26,000) and will apply to a range of electronic services including streaming games, music, apps, films, e-books, e-journals, software and internet services.

The above information was kindly provided by Fiscal Solutions (UK), www.fiscalsolutions.co.uk; contact: [email protected].